Saputos undertake ‘tax planning’ as taxes set to rise

Editor's note: This article has been updated to add National Bank Financial as one of the lead underwriters on the Saputo share sale.

With the two parties that are leading in the Quebec elections both saying they will raise capital gains taxes on high-income earners, look for more tax planning such as the unloading of almost a quarter-billion dollars of stock by Montreal's wealthy Saputo family.

The Saputos announced a plan to sell $130-million of stock in Saputo Inc., the cheese maker that made the family's fortune. The sale of 3.1 million shares, led by National Bank Financial and BMO Nesbitt Burns, takes the family's stake from 35.3 per cent to 33.7 per cent. A note to potential buyers said that the purpose was "tax planning."

The family also sold on Aug. 23 about $150-million of shares in TransForce Inc., cutting its investment in the delivery company by about half. That deal was led by BMO and National Bank of Canada.

The Parti Quebecois plans to raise capital gains taxes, leader Pauline Marois said on Wednesday. That matches a similar pledge by the Coalition Avenir Québec. The parties are No. 1 and No. 2 in the polls, ahead of the Liberal Party that is currently in power. The election is Monday.